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69. You have the opportunity to make a one-time sale if you will give a new customer 30 days to pay. You suspect there is
69. You have the opportunity to make a one-time sale if you will give a new customer 30 days to pay. You suspect there is a 15 percent chance this person will never pay you. The sales price of the item the customer wants to buy is $330. Your variable cost on that item is $274 and your monthly interest rate is 1.15 percent. Should you grant credit to this customer? Why or why not? A. B. C. D. E. Yes; because the NPV of the potential sale is $13.05 Yes; because the NPV of the potential sale is $3.31 No; because the NPV of the potential sale is-$13.00 No; because the NPV of the potential sale is -13.05 No; because the NPV of the potential sale is-$2.65 71. You are trying to attract new customers you feel could become repeat customers. The average selling price of your products is $119 each with a $76 per unit variable cost. The monthly interest rate is 1.25 percent. Your experience tells you that 8 percent of these customers will never pay their bill. What is the value of a new customer who does not default on his or her bill? A. $5,733 B. $3,440 C.$2,617 D. $8,817 E. $9,520
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